FOREX-Dollar, yen rise ahead of tense G7 summit

(Removes extraneous words "on Friday" in lead paragraph)

* G7 meeting prelude to week filled with event risk

* Dollar set for weekly loss

* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh

By Gertrude Chavez-Dreyfuss

NEW YORK, June 8 (Reuters) - The dollar rose on Friday after

a four-day losing streak, while perceived safe-haven currencies

such as the yen gained as investors grew cautious ahead of what

is expected to be a contentious G7 meeting in Canada later in

the session.

Despite Friday's gains, the dollar was on track for its

largest weekly drop since late March.

Next (Frankfurt: 779551 - news) week's expected hike in U.S. interest rates by the

Federal Reserve, a European Central Bank policy meeting and a

Brexit bill vote all pose risks for currency traders and could

inject more volatility in the market. For a factbox, see

"Headline risk is elevated into the G7 leaders' summit as

market participants focus on trade and President Trump," said

Shaun Osborne, chief currency strategist at Scotiabank in

Toronto.

U.S. President Donald Trump lashed out at Canada and the

European Union on Friday, setting the tone for a hostile Group

of Seven (G7) summit and raising the specter of a trade war that

has unnerved Washington's top allies as well as

investors.

In mid-morning trading, the dollar rose 0.3 percent against

a basket of currencies to 93.67. But it was poised to

notch its biggest weekly drop in 11 weeks.

Trade disputes between the United States and its major

partners will be in the spotlight, with the Mexican peso

and the Canadian dollar leading losers.

The peso fell to its weakest level against the dollar in 16

months on Friday.

High yielding currencies were a sea of red with Japanese yen

higher on the day. The dollar was last down 0.2 percent versus

the yen at 109.51

ECB BETS

The dollar has come under pressure this week as the euro

bounced back from 10-month lows thanks to an ebb in Italian

political concerns and speculation that the ECB could signal

intentions to start unwinding its massive bond purchasing

program when it holds the policy meeting on June 14.

The euro fell 0.3 percent to $1.1758 after rising to

a three-week high of $1.1840 overnight as investors took profits

into this week's bounce.

It was up more than 1 percent on the week and was set to

post its biggest weekly gain since mid-February.

While expectations have grown that the ECB will signal its

intention to wind down the quantitative easing program, ING

strategists believe the Italian political situation and the

potential of a breakout in trade tensions will stay its hand.

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Currency bid prices at 9:49AM (1349 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.1759 $1.1797 -0.32% -1.97% +1.1810 +1.1728

Dollar/Yen JPY= 109.4800 109.6900 -0.19% -2.83% +109.8500 +109.2000

Euro/Yen EURJPY= 128.77 129.41 -0.49% -4.76% +129.7200 +128.1200

Dollar/Swiss CHF= 0.9871 0.9804 +0.68% +1.29% +0.9887 +0.9799

Sterling/Dollar GBP= 1.3374 1.3420 -0.34% -1.02% +1.3438 +1.3355

Dollar/Canadian CAD= 1.2988 1.2970 +0.14% +3.25% +1.3040 +1.2969

Australian/Doll AUD= 0.7585 0.7625 -0.52% -2.76% +0.7627 +0.7561

ar

Euro/Swiss EURCHF= 1.1609 1.1566 +0.37% -0.68% +1.1618 +1.1538

Euro/Sterling EURGBP= 0.8791 0.8788 +0.03% -1.02% +0.8799 +0.8758

NZ NZD= 0.7021 0.7026 -0.07% -0.93% +0.7032 +0.7009

Dollar/Dollar

Dollar/Norway NOK= 8.0700 8.0558 +0.18% -1.68% +8.1104 +8.0542

Euro/Norway EURNOK= 9.4912 9.5046 -0.14% -3.65% +9.5310 +9.4910

Dollar/Sweden SEK= 8.7284 8.6978 +0.08% +6.42% +8.7739 +8.6939

Euro/Sweden EURSEK= 10.2657 10.2607 +0.08% +4.32% +10.3113 +10.2600

(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by

Saikat Chatterjee in London)